$15.2 Billion Tax Increase on Out of Pocket Medical Expenses
Beginning January 1, 2013, ObamaCare limits the medical expense deduction, which will raise taxes by $15.2 billion over ten years, according to the Joint Committee on Taxation.
Under current law, if out-of-pocket medical expenses, including health insurance premiums and medical procedures not covered by health insurance, exceed 7.5 percent of Adjusted Gross Income (AGI), then those expenses are fully deductible.
Americans who have high out-of-pocket medical costs or are sick take this deduction. Even some of the most expensive and comprehensive health insurance plans – including FEHBPs – don’t cover high-cost medical procedures, such as in-vitro fertilization where the cost for the procedure and the prescription drugs can run as high as $20,000 per treatment and where families can have multiple treatments in a year.
ObamaCare increases the medical expense threshold from 7.5 percent of AGI to 10 percent on most Americans (seniors get a three-year reprieve) beginning on January 1, 2013. The Joint Committee on Taxation estimates the new limit will affect 14.8 million taxpayers — 14.7 million of whom will earn less than $200,000 a year!
For further reading, click here.
For previous ObamaCare Flatlines, visit www.gop.gov.
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